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TFP Bureau, New Delhi; February 27,2024: Over the past decade, India’s coal sector has undergone a profound transformation driven by a series of bold reforms aimed at enhancing sustainability, efficiency, and energy security. Initiated in 2014, these reforms have not only revitalized production but also fostered transparency and competitiveness, positioning coal as a cornerstone of the nation’s economic growth and energy stability.
Enactment of CMSP Act- 2015:
The Coal Mines Special Provisions Act, 2015, was a watershed moment, addressing the aftermath of the Supreme Court’s cancellation of 204 coal block allocations. Introducing transparent auction processes and encouraging private participation, this legislation revitalized the coal mining sector, generating revenue, and employment opportunities.
Mines and Minerals (Development and Regulation) Amendment Act:
Significant amendments to the Mines and Minerals (Development and Regulation) Act ushered in transparency and efficiency, particularly in coal mining license allocation, facilitating Composite Prospecting Licence-cum-Mining Lease (PL-cum-ML) specifically for coal.
Commercial Coal Mining:
The launch of commercial coal mining auctions in 2020 marked a historic milestone, attracting private investment, fostering competition, and creating over three lakh new jobs. This initiative accelerated project implementation and underscored the government’s commitment to economic growth.
Single Window for E-auction of Coal:
In 2022, the introduction of a single e-auction window streamlined coal sales, promoting market-driven pricing mechanisms and enhancing operational efficiencies. This policy aimed to remove market distortions and stimulate domestic coal demand.
Opening of Abandoned/Discontinued Mines:
Amendments to the New Coal Distribution Policy facilitated the sale of coal from closed mines, with 36 identified for reopening on a revenue-sharing basis, fostering private-sector participation and reviving dormant assets.
Guidelines for Mine Plan and Closure Plans:
Streamlined guidelines for Mine Plan and Closure Plans, coupled with online approval processes, expedited project approvals, easing regulatory burdens, and enhancing operational efficiency.
Decriminalization to Boost Business
Decriminalization of provisions within the Mineral Concession Rules promoted ease of doing business, signaling the government’s commitment to fostering a conducive regulatory environment.
Transparency and Ease of Doing Business
Simplified procedures and online platforms improved transparency and efficiency in coal block allocation and mine operations, bolstering investor confidence.
FDI and Technological Advancement
Liberalization of FDI norms in coal mining attracted global expertise and advanced technologies, augmenting efficiency and productivity in the sector.
Coal Mines Surveillance and Management System
Enhanced security measures and citizen engagement initiatives like Khanan Prahari and CMSMS combated illegal mining, safeguarding natural resources and promoting transparency.
Diversification of Energy Sources
Promotion of extensive diversification initiatives within CPSEs underscored India’s commitment to a balanced energy mix, securing sustainable operations and anticipating future coal surpluses.
Sustainable Practices
Championing sustainable mining practices, the Ministry of Coal prioritized environmental conservation and community welfare, mitigating the sector’s environmental footprint and fostering inclusive growth.
Investment in Coal Gasification
Investments in coal gasification projects underscored India’s commitment to reducing emissions and promoting cleaner energy sources, aligning with global climate goals.
Integrated Coal Logistic Policy and Plan
Efforts to modernize coal transportation through integrated logistics initiatives and railway projects bolstered coal evacuation systems, enhancing resilience and cost-effectiveness.
These comprehensive reforms have positioned India’s coal sector as a beacon of progress, balancing economic imperatives with environmental stewardship. As the nation continues its journey towards sustainable development, the Ministry of Coal remains steadfast in its commitment to driving innovation, fostering growth, and ensuring energy security for all.
